CBDCs are digital versions of sovereign government currencies that run on a centralized private blockchain. CBDCs have all the benefits of fiat currencies without the physical limitations, settlement delays, and high transaction fees. Because CBDCs are built on blockchains, they can move frictionlessly around the world almost instantly – removing time, unnecessary handoffs, and excess costs from country-to-country transfers.
According to the 35-page study, global corporations collectively move more than $23 trillion a year in global money wires, incurring $120 billion in transaction fees, with an average settlement time of two-to-three days. The research goes on to state that efforts to create a singularly efficient, secure, speedy, and cheap money-moving network globally has been elusive – until blockchain technology made CBDCs a reality.
Courtesy: oliverwyman.com/Unlocking $120 Billion Value In Cross-border Payments
Because several governments are already working on developing their own countries’ CBDCs, the study notes that a digital network would have to be developed that was CBDC agnostic and could handle all flavors of digital sovereign currencies. Dubbed a multi-currency CBDC (mCBDC) network, the authors hypothesize that an mCBDC could address these challenges, while providing greater efficiencies for wholesale payment transactions across borders.
The report lists four critical factors that need to be addressed for successful deployment of an mCBDC network to occur:
On The Flipside
Why You Should Care?
JPMorgan’s proposal is a step toward a parallel government-run, centralized blockchain crypto-verse. If that network is built and gains corporate adoption, it’s difficult to imagine that governments won’t try to constrain current public blockchain-based cryptos such as Blockchain, Ethereum, and Cardano.
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
Error: Contact form not found.
You can always unsubscribe with just 1 click.
Continue reading on DailyCoin
Source: Cryptocurrency - investing.com
